Material Management Overview

Material Management Overview

• Material management systematically controls supply acquisition and use for cost-effectiveness and availability.
• Components include purchasing/requisitioning and product oversight.
• Hospitals often centralize material management in a department with purchasing and stockroom sections.
• Laboratories may combine these functions or use individual sections/supervisors.
• Individuals may also be assigned to manage supply requisitioning.

Goals of Material Management

• Timely supply delivery: Supplies should arrive on schedule.
• Minimal spoilage: Reduce waste from supplies.
• Avoid backorders/delays: Ensure supply chain continuity.
• Efficient storage: Maximizing storage space usage.
• Economical pricing: Secure the lowest possible price for supplies.
• Inventory optimization: Avoid overstocking, thus freeing financial resources.

Supplies vs. Capital Items

• Supplies: Products meeting specific time and price criteria for budgeting.

• Capital Items: Products not categorized as supplies. Examples include expensive instruments used over many years, such as hematology and chemistry analyzers.

• Supply categorization:

  • Shelf life: Items consumed within or with under one-year shelf life are usually considered supplies
  • Price: Items below designated price ceilings (by comptroller) might be classified as supplies, regardless of exceeding one-year shelf life. Examples: Under $1000 are common cutoffs, but can vary significantly by institution, from $5000 or even lower. Example: An automated diluter costing $500 may be considered a supply item, despite lasting many years.

Explore the fundamentals of material management, including its goals, key components, and distinctions between supplies and capital items. This quiz covers essential strategies for effective supply chain control and optimization in various environments, particularly in healthcare settings.